The Research On Operational Mechanism Of Internal Capital Market In China's Business Group

This article firstly explicitly proposes the internal capital market operational mechanism's definition, limits the basic elements of internal capital market mechanism and generalizes the composition of the internal capital market operational mechanism, on basis of systematically summing up the related literature studied by the other scholars. Secondly, I assays the characteristic of the internal capital market operational mechanism ,which refer to the M, H as well as the mixed type organizational structure that formed in the foundation of these two basic kind of organizational structure, from the aspects of finance gathering mechanism, capital allocation mechanism, price formation mechanism, information transmission mechanism and the stimulation and restraint mechanism, then induced the similarities and differences of these three kinds of organizational structure's internal capital market operational mechanism. Thirdly, this paper analyzes the internal capital market operational mechanism's characteristic of China's business group, just as the following aspects: gathering fund from the external capital market is the main finance achieving channel of the internal capital market ;in the aspect of the fund allocation mechanism, internal capital assignment flows manifests the multiplex investment characteristic; and the financial company has play more and more important role in gathering and allocation of capital in the internal capital market. Then, I pointes out the question of internal capital market operational mechanism about China's business group, from the perspective of the external environment foundation, the main question includes: The outside capital market is imperfect and the related laws and regulations are needed improved; from the aspect of China's business group ,the problem covers: the information transmission mechanism is not perfect that non-related multiplication investing causes the managers cannot effectively dispose the information gathered from the whole group; the business group financial company has many questions which is including the financing channel is too narrow, the financing method is unitary, the fund structure is unreasonable, and so on; the stimulation and restraint mechanism is not consummate that induce the manager-renting behavior; and the holding shareholders use the illegal internal capital market transaction to complete the internal capital assignment, invading the other shareholders benefit. Finally the paper proposes the related solution from macroscopic and the microscopic stratification, aiming at improving the internal capital market operational mechanism of China's business group. In the macroscopic stratification, the government must create good external condition for the development of business group internal capital market ,so the government should consummate the external capital market ,make and revise the related laws and regulations; In the microscopic stratification, that should depends upon the well development of business group internal capital market, specifically speaking, the transforming growth pattern of finance company, formulating the reasonable internal price formation system, guidance business group whole going on the market, and transforming organizational structure of the business group, reducing the management level and so on, which can consummate internal capital market operational mechanism of our country's business group from the different angle.